If you have an interest in the property sector, you may be keen to become a landlord. Residential property is a great way to earn extra money alongside a day job, especially due to the rising cost of properties over the last few years. Still, there are several challenges you‘relikely to be faced with along the way.
If you are new to the property sector, you‘ll likely have many questions surrounding the process and whether it‘s the right avenue for you. If one thing‘s for sure, it is not as easy as it looks and involves a great deal of responsibility if you‘re undertaking the venture single-handedly.
Here are some aspects you may wish to find out more about:
- Can I become a landlord?
Anyone can become a landlord, providing they have a property to rent out to tenants.
In most cases, prospective landlords will need a buy-to-let mortgage, which has major differences from a standard homeowner‘s mortgage.
Being a landlord is essentially a business, so you‘ll have to pay additional taxes, and you‘ll have expenses that need to be factored in along the way. As a result, you‘ll need the time and money to dedicate to property rental and understand that there is the element of risk involved,which is the same for any business.
- What are the responsibilities?
Being a landlord is a 24-hour job, and you‘ll need to be on-hand around the clock to ensure your tenants‘ needs are taken care of.
Some of the key responsibilities of becoming a tenant include:
- Collecting rent from tenants
- Maintenance and repair of the property
- Dealing with insurance and liability problems
- Setting rules and regulations for tenants
- Understanding local landlord-tenant laws
- Be legally protected
Although it is rare, there may be occasions when you face legal accusations from tenants. Many disputes can occur that cannot be solved personally, which may mean calling in professional assistance to take over the case for you. Typically, the most common conflict is the rental agreement. These dilemmas can be extremely drawn out and could become nasty if not resolved in a legal environment.
To ensure you have legal backup when needed, it would be best to hire an expert witness for commercial real estate Los Angeles from Lee Segal Witness Esq. who will be on hand to handle the case for you.
- Hire a property manager
If you wish to avoid many of the responsibilities that come with being a landlord, there is the option of hiring a property manager to oversee everything on your behalf. While this can be an additional business expense, it is worth the cost if you believe it will keep your stress levels down and maintain a healthy work-life balance.
A professional property management company will supervise some of the most time-consuming tasks of a landlord‘s duties, including collecting rent, managing communication between the tenant and landlord, and staying up to date with property legislation.
